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Resources to help understand and implement Single Touch Payroll (STP)
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Big fines, prison on the cards as new SG penalties introduced
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Extra website resources and tools is one way we offer you and your family more.
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FBT Exemption for Various Work Vehicles
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Tax payable on expenditure recoupments
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ATO identifies SMSF contravention red flags
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Who wins dispute about taxable income?
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Australia - facts & figures March 2019
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Strategies to handle scam phone calls and problem e-mails.
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Instant asset write-off threshold upped to $25k
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Jail time for GST fraud
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Correcting GST Errors
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Fuel tax credit rates raised
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ATO set to contact clients for overdue TPAR
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Reminder on Victoria Property Duties
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How Australia is performing.
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Global outlook summary: Down but not out
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Bookkeepers remind on incoming TPRS obligations
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Golden Rules for Deductions
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How's Australia going - vital statistics?
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Tax, SMEs set to be ‘political football’ in 2019 as election nears
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Cap lifted on popular financing option for clients
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Expiry of 900,000 interest-only loans set for January
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Australian Taxation Office (ATO) Scam Alert: Fake Demands for Tax Payments
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Tax Office sounds alarm on popular property strategy
Article archive
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Tax payable on expenditure recoupments

A Full Federal Court decision has confirmed a mismatch between capital expenditure and government grants.

       

 

A windfarm operator incurred significant expenditure which was depreciated.

Upon proving the expenditure, it received a substantial government grant.

The court decided this was an assessable recoupment which mean that the grant was assessable income in full in the receipt year, whilst the expenditure remained depreciable.

It therefore had to pay income tax up front when it was already cash flow deficient.

This is not a new interpretation, but seems as a reminder to take nothing for granted when it comes to tax.

 

 

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